Cirque du Soleil's marketing vice-president Mario D'Amico said the company, which employs 2,500 people, had enjoyed a "love affair" with Australia since it first visited the country in 1999.

"It obviously came quite naturally to us to choose Australia and the city of Melbourne, particularly, as our hub for Asia-Pacific," Mr D'Amico said.

"Melbourne and its long tradition as a patron of artistic and cultural activities made it the ideal candidate."

Victorian State and Regional Development Minister John Brumby welcomed today's announcement.

"Having a permanent headquarters for Cirque du Soleil in Melbourne is great news for Victoria as it underscores the fact we have one of the most thriving circus arts cultures in the world," Mr Brumby said.

Cirque Du Soleil also today unveiled a 12-month Australia and New Zealand tour, opening in Sydney on August 12.